——ABB LTD, FEBRUARY 28, 2019

Industrial AutomationWriting the future of safe and smart operations in process and hybrid industriesPeter Terwiesch, President Industrial Automation

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This presentation includes forward-looking information and statements including statements concerning the outlook for our businesses. These statements are based on current expectations, estimates and projections about the factors that may affect our future performance, including global economic conditions, and the economic conditions of the regions and industries that are major markets for ABB Ltd. These expectations, estimates and projections are generally identifiable by statements containing words such as “expects,” “believes,” “estimates,” “targets,” “plans,” “outlook”, “on track”, “2019 framework” or similar expressions.There are numerous risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materially from the forward-looking information and statements made in this presentation and which could affect our ability to achieve any or all of our stated targets. The important factors that could cause such differences include, among others:– business risks associated with the volatile global economic environment and political conditions– costs associated with compliance activities– market acceptance of new products and services– changes in governmental regulations and currency exchange rates, and– such other factors as may be discussed from time to time in ABB Ltd’s filings with the U.S. Securities and Exchange Commission, including its Annual Reports on Form 20-F.Although ABB Ltd believes that its expectations reflected in any such forward-looking statement are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved.Some of the planned changes might be subject to any relevant I&C processes with the Employee Council Europe and / or local employee representatives / employees.This presentation contains non-GAAP measures of performance. Definitions of these measures and reconciliations between these measures and their US GAAP counterparts can be found in the ‘Supplemental reconciliations and definitions’ section of “Financial Information” under “Quarterly results and annual reports” on our website at www.abb.com/investorrelations

Important notices

February 28, 2019 Slide 2February 28, 2019

—Industrial Automation at a glance

Slide 3February 28, 2019

~$90 bnglobal market size

14.1%2018 op. EBITA

EPCs

DistributorsSystem integrators

Direct sales

OEMsEurope

Americas

AMEA

Business mix (by revenue)

~21 kemployees worldwide

Customers Offering GeographiesChannels

Products

Systems

Services2

~$6.5 bn2018 revenues

Global #2

#1 in DCS and process automation solutions

#3 in measurement & analytics

#1 in marine & turbocharging

Chemicals & Refining

Power Generation

Mining, Metals, Paper

Oil & Gas

Marine, other T&I

Other hybrid industries

Key figures1

1 New IA structure excluding B&R2 Incl. Digital applications and softwareNote: all 2018 results numbers based on management estimates

February 28, 2019

—2018 delivered, positioned for profitable growth

February 28, 2019 Note: all figures are in new IA structure excluding B&RSlide 4

Leadership in process automation – # 1 in DCS, 19th consecutive year

Orders $6.8 bn, 8% up; large orders returned to growth

Revenues $6.5 bn, stable; ABB Ability™ digital service revenues doubled in two years

Order backlog grew for first time since Q4 2015

Delivered $914 mn operating EBITA at a 14.1% margin

Profitability driven by strong execution and positive business mix, including EPC exit

Decreased working capital, improved return

Growth across regions and businesses in 2018

Cross-divisional collaboration, integral to IA business model

Profitable Growth

Relentless Execution

Business-led Collaboration

February 28, 2019

—Addressing attractive markets

February 28, 2019 Slide 5

Global addressable marketin $ bn

Business exposure

% of revenuesMarket growth drivers

Increase in F&B and pharma investments driven by middle class growth; datacenter projects’ multiplication

Energy efficiency; electric/zero emission vessels; digital and autonomous vessels

Sustainability and environmental regulations; conversion of coal to gas

Recovery of capex investments; digital solutions to raise productivity and improve safety

Recovery of capex investments; focus on EOR, safety, sustainability and digitalization

High-growth segments

(examples)

Midstream LNG7 – 10%

Marine electric propulsion

7 – 10%

Mining digital solutions

>10%

Middle class growth in Asia (e.g. plastics demand); growth in countries with cheap feed-stock

Today

Chemicals & Refining

2025

O&G

Power Generation

Mining, Metals, Paper

Marine, other T&IOther hybrid ind.

~90

~115+3%

February 28, 2019

—Customer needs in process and hybrid industries

February 28, 2019 Slide 6

Addressing customer needs...

For capital projects: reduce…

Cost ScheduleRisk

For operations: improve…

SafetyProductivityEnergy efficiency

…by mastering operations and asset loops during the project and operations phases

Control

Sense Act

Operations Assets

Extended Automation

Asset analytics

Sense Service

February 28, 2019

—Positioned to win…

February 28, 2019 1E.g. ABB IA as main automation supplier for Sadara, largest petrochemical complex built in one phaseSlide 7

Safe and smart operations

4Vast global footprint

Largest service footprint

Presence in 100+ countries

24/7 ABB Ability™ Collaborative Operations™

2Industry expertise

Enabling customersto realize most complex projects1 and run mission critical, real-time operations

Strong market share in industry-specific products

1Pioneering technology

#1 in DCSfor 19th consecutive year

125+ years in automation

3Solutions-oriented

business model

Channel to market for ABB products

ABB Ability™ digital solutions

5Sales after Service, Service after Sales

Largest installed base

35,000connected systems

35,000,000connected devices

February 28, 2019

—…and capture larger scope in Capex projects for ABB

February 28, 2019 Slide 8

Illustrative: typical scope of a greenfield opportunity in OGC

Integrated automation of process, electrical and motion

Augmented by software and digital services

Reduced installation and maintenance costs

Integrated lifecycle services across the full scope

Customer benefits

Motion

Automation

Electrification

Digital

Typical automation

vendor Automation

Digital

IA project scope

IA offering

Other ABBoffering

February 28, 2019

—IA generates value for ABB both directly and indirectly

February 28, 2019 1Other ABB businesses content: Electrification, Robotics & Discrete Automation, Motion, Power GridsSlide 9

3rd party offering

ABB offering

Cost

Profit

70

ABB Group viewIA view

Cost

Profit

3rd party offering

IA offeringOther ABB businesses offering1

IA profit ABB profit

Illustrative: example of a typical solutions order

EP / MO / RA profit

February 28, 2019

—Serving customer needs with most comprehensive solutions portfolio

February 28, 2019 Slide 10

IA integrated solutions

February 28, 2019

—Leading solutions portfolio for ABB Ability™ Collaborative Operations™

February 28, 2019 1as of 2018Slide 11

Transforming the way we work with customers with 24/7 access to ABB experts

ABB Ability™CollaborativeOperations™Center

Customer assetse.g. rigs, mills, vessels

CustomerOperations

Center / HQ

900+ industrial plants800+ marine vessels40+ mines

# of customers connected1

Increased productivityHigher uptimeLower maintenance costsImproved operational performance

Key benefits(selection)

Oil & Gas: -30% op. expendituresMining: $5 mn of op. savings p.a.Pulp & Paper: -55% maintenancePower Generation: +20% machine lifeMarine: $350k savings per vessel

Key results(selection)

For operations: improve…

SafetyProductivityEnergy efficiency

February 28, 2019

—What’s next?

February 28, 2019 Slide 12

Towards autonomous: driving pioneering technology leadership in digital industries

1890 Today1980 Tomorrow

Artificial Intelligence

Big data analytics

Open standards, digital ecosystem

Cloud-based engineering

Digital marshalling

ABB Ability™ platform

Advanced services

Collaborative Operations™

Digital twin, simulations

Connected operations

Collaborative operations

Autonomous operations

Isolated operations

February 28, 2019

—Driving above-market growth going forward

February 28, 2019 Slide 13

Medium-term revenue development

Mediumterm

FY 20181 Market growth

3% p.a.

$6.5bn

Drivers for above-market revenue growth

Prioritize verticals and drive tailored growth initiatives

Leverage unique installed base and vast service footprint to support customer lifecycle

Drive industry consolidation and increase market share

Build on DCS leadership to provide integrated solutions across process, electrical, motion and digital

Accelerate revenues from ABB Ability™ solutions, new software applications and service business models

Innovate new sensor and analyzer technologies

Add industry-specific, differentiated solutions based on anchor products and comprehensive ABB offering

Increase focus on fast-growing hybrid segmentsMarket share gains

1New IA structure excluding B&R, based on management estimate

Penetration

Expansion

Innovation

February 28, 2019

—Driving op. EBITA margin within the target margin corridor of 12 – 16% with little additional capital

February 28, 2019 Slide 14

Details on key drivers

Volume/mix

Operational efficiency

Serve growing customer needs in process and hybrid industries

Balance growth, margin and ROCE

Strive towards flawless project execution excellence

Use AI to further improve efficiency

Relentless performance culture

FY 20181 Cost inflation &

price pressure

ABB-OS™Operationalefficiency

Mediumterm

12%

14.1%

Volume/mix

Operating EBITA margin

1

2

16%

1

2

Drive towards a lean and simple organization

Align resources toward profitable growth priorities

Implement ABB-OS™ – zero-based budgeting

ABB-OS™3

3

1New IA structure excluding B&R, based on management estimateFebruary 28, 2019

—Creating value for customers in process & hybrid industries and ABB

February 28, 2019 Note: operational EBITA margin target is in new IA structure excluding B&RSlide 15

Writing the future of safe and smart operations

Attractive growth

Stronger margins

Address customer needs with differentiated, industry-specific offering, incl. ABB product pull-through, ABB Ability™ and integrated solutions

Capture greater share of customer wallet in fastest growing verticals; leverage markets returning to growth

Implement clear initiatives to drive cost down and increase productivity

Enhance efficiency through simplification

December 17, 2018

Optimizingcapital

Drive superior returns targeting highly attractive ROCE

Invest into the future: ABB Ability™, innovation, differentiated solutions and thought leadership

Medium-termoperational EBITA margin

12 – 16%

February 28, 2019

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Let’s write the future of safe and smart operations. Together.

February 28, 2019 Slide 16February 28, 2019